The law on cooperative societies will soon be amended: Amit Shah


Will work in tandem with the States, there will be no friction, says the Minister for Union Cooperation.

Union Cooperation Minister Amit Shah said on Saturday that the Center will soon make changes to the law on multi-state cooperative societies and that a new policy for cooperatives is on the anvil. He added that the question of the subjugation of cooperatives to the state could be answered in legal terms but the newly created ministry will work in tandem with the states and “there will be no friction”.

Cash-rich co-ops in many states are controlled by opposition parties such as the Nationalist Congress Party (NCP) and Congress. Co-operatives decide political fortunes in states such as Maharashtra, Kerala, Gujarat, parts of Karnataka, Tamil Nadu, Madhya Pradesh and West Bengal.

The formation of the Ministry of Cooperation was announced on July 5, and Interior Minister Amit Shah was given the portfolio when the Cabinet was enlarged.

Shah said the Center is also planning changes to the laws that govern the Primary Farm Credit Corporation (PACS), after which states will receive notice and they will also need to amend relevant laws.

Easy access to credit

He said PACS should be strengthened and applied at the grassroots so that even the marginalized can benefit from the credit. Suppose Diwali is around the corner and someone needs 1000 yen to celebrate the festival, he had income two months ago but did not immediately have the money due to an emergency. medical. Only PACS can help you here. No bank will help, banks require documents, if the person had these papers why would they seek help from a credit company? These units grant credit on the basis of compassion, ”said Mr. Shah. He added that over the next five years, the government plans to increase the number of PACS from the existing 65,000 to 3 lakh across the country.

Speaking at the first Sehkarita Sammelan or National Co-operatives Conference where he addressed more than 2,100 representatives from different co-ops and nearly six million participants online, Shah said some people were wondering why the Center had created this new ministry when cooperatives are a matter of state.

Regarding the proposed new cooperative policy, Mr. Shah said that a policy was introduced in 2002 by then Prime Minister Atal Bihari Vajpayee, and now the Modi government will start working on a new policy.

Emphasizing that the cooperative movement is more relevant today than ever, Mr. Shah said that cooperatives can contribute a lot to the development of the country. According to him, cooperatives will play a crucial role in turning India into a $ 5,000 billion economy.

Referring to the problems facing cooperatives in tax and other matters, Mr. Shah said he was aware of the concerns and assured that there would be no injustice towards them.

“While cooperatives like IFFCO, Amul, Lijjat Papad and KRIBHCO have taken a big step forward in areas like milk and fertilizers, but there are many other areas like seeds, food processing where cooperatives can exploit the potential, ”he said.

The Union minister said that cooperatives are operating in one form or another in 91% of villages in the country. There are 8.55 lakh registered cooperatives, 8.5 lakh cooperative credit societies and 7 lakh non-credit cooperative societies and more than 17 national cooperatives across India.


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